AmeriHome Mortgage Telephone Pay-to-Pay Charges Class Action

AmeriHome Mortgage Company, LLC, the complaint for this class action estimates, “has a $23 billion portfolio of mortgage servicing rights.” However, it charges a fee of up to $2 when borrowers make their mortgage payments over the telephone. The complaint alleges that this “Pay-to-Pay” fee is unlawful.

The Nationwide Class for this action is all persons (1) with a residential mortgage loan on their property, (2) that is serviced or subserviced by AmeriHome, (3) who paid a fee to AmeriHome for making a loan payment by telephone during the applicable statutes of limitations through the date the class is certified in this case. A Florida Subclass has been defined for those whose residential loans secure a property in Florida.

AmeriHome was the servicer for a mortgage held by plaintiff Sandra E. Lish. According to the complaint, Lish paid her mortgage over the phone on November 15, 2019, December 16, 2019, January 14, 2020, and February 14, 2020. Each time, she says she was charged a $2 Pay-to-Pay fee

The $2 fee, the complaint alleges, “is far more than AmeriHome’s actual cost to process the transaction. But AmeriHome is prohibited from making money off of consumers by imposing and collecting additional ‘service’ fees that do not reflect the cost to AmeriHome of providing such services.”

The complaint alleges, “Based on information and belief, the usual cost that a servicer like AmeriHome pays to process Pay-to-Pay transactions is $.50 or less per transaction.” The complaint claims that “AmeriHome pockets the difference as profit.”

That’s not all. The complaint asserts, “Indeed, AmeriHome cannot legally impose unauthorized charges which are not explicitly contained in the mortgage agreement and Pay-to-Pay Fees are not permitted by Plaintiff’s and Class Members’ … mortgage agreements.”

The charging of these fees, the complaint alleges, “violates state and federal debt collection law and breaches the uniform terms of borrowers’ mortgages…”

For example, the complaint alleges that the fees violate California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA). The complaint quotes this law as prohibiting “[c]ollecting or attempting to collect from the debtor the whole or any part of the debt collector’s fee or charges for services rendered, or other expense incurred by the debt collector in the collection of the consumer debt, except as permitted by law.” Also, the complaint says, under the Rosenthal Act it is illegal to claim that a consumer debt “may be increased by the addition of … charges if, in fact, such fees and charges may not be legally added to the existing obligation.”

According to the complaint, other laws violated by AmeriHome’s charges include the California Unfair Competition Law, the Florida Consumer Collection Practices Act, and the Florida Deceptive and Unfair Trade Practices Act.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

AmeriHome Mortgage Telephone Pay-to-Pay Charges Complaint

August 9, 2020

AmeriHome Mortgage Company, LLC, the complaint for this class action estimates, “has a $23 billion portfolio of mortgage servicing rights.” However, it charges a fee of up to $2 when borrowers make their mortgage payments over the telephone. The complaint alleges that this “Pay-to-Pay” fee is unlawful.

AmeriHome Mortgage Telephone Pay-to-Pay Charges Complaint

Case Event History

AmeriHome Mortgage Telephone Pay-to-Pay Charges Complaint

August 9, 2020

AmeriHome Mortgage Company, LLC, the complaint for this class action estimates, “has a $23 billion portfolio of mortgage servicing rights.” However, it charges a fee of up to $2 when borrowers make their mortgage payments over the telephone. The complaint alleges that this “Pay-to-Pay” fee is unlawful.

AmeriHome Mortgage Telephone Pay-to-Pay Charges Complaint
Tags: Mortgage-Related Unfair Practices, Processing or Pay-to-Pay Fees